There isn’t any share that is actually recession-proof. But some will surely be more resistant than others. Today, I’m looking at two that I think have safety characteristics.

Soapy safety?

The PZ Cussons (LSE: PZC) share price is still depressed since the pandemic. We saw a mini recovery in 2021, as sales of the firm’s handwashing and sanitising products got a boost.

But that didn’t last. And we’re looking at a 12-month decline of 13%. So, Cussons is not exactly looking like pandemic-resistant safety, I admit. So why might it be recession-resistant?

Much of the weakness is surely down to the few years of falling earnings the company recorded before Covid arrived. And when something is already struggling, it’s likely to be hit harder by a general downturn.

Refocus

The refocus does seem to be paying off, with earnings growth returning in 2021. And, perhaps more importantly, the dividend was lifted by 5% after suffering a 30% cut in 2021.

That’s only a small rebound. But I find any dividend recovery at such an early rebuilding stage encouraging.

For the year ended May 2022, PZ Cussons says it expects full-year, like-for-like revenue growth of 3%. And that’s with 7% in the fourth quarter.

Forecasts put the dividend yield at 3%, which is still modest. And there’s still some way to go for the company to get back fully on track. So there is clearly risk here. But with a decent outlook heading into a likely recession year, I think PZ Cussons could be a long-term dividend buy.

Convenience food resilience?

Convenience food manufacturer Greencore (LSE: GNC), meanwhile saw earnings collapse in 2021. And its share price went with them. This time, we’re looking at a 12-month fall of 24%.

Forecasts suggests there’s a strong recovery on the way. Based on earnings for the year to September 2021, the stock is on a trailing price-to-earnings (P/E) ratio of 26. But analysts reckon that could halve this year, and keep on dropping over the next two years.

The dividend was canned in 2020, but forecasts suggest it will be back this year and could reach a 5% yield by 2024.

Q3 trading

The third quarter brought a pro-forma revenue increase of 26%, with 31% over the nine months. That’s against a tough prior year. But even compared to 2019, we saw a 14% rise for the nine-month period.

Greencore says it expects “adjusted EPS of between 9.2p and 10.0p“. On the current share price, that suggests a P/E of around 10. That’s even lower than analyst forecasts.

Again, we’re looking at a tentative recovery for a company that has suffered. And there’s no guarantee the upswing will continue, especially not heading into the current economic winds.

But again, I think there’s a safety aspect here, from the company’s position in the business of food to go. I’m holding.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Airtel Africa 

What it does: Airtel Africa provides telecommunications and mobile money services in sub-Saharan Africa. 

By Royston Wild. Demand for telecoms services remains largely unchanged during all points of the economic cycle. Therefore, it’s my belief that Airtel Africa (LSE: AAF) could be a top growth stock for June as inflation rises and recessionary risks grow.

City analysts think Airtel’s earnings will rise 12% in the current financial year (to March 2023). They think profits growth will accelerate to 16% next year too. 

And so at today’s prices, the FTSE 100 share trades on a bargain-basement forward price-to-earnings (P/E) ratio of 8.4 times. 

I don’t just think Airtel’s a great buy for these uncertain times, though. Its focus on the fast-growing markets of Africa provides it with exceptional long-term revenue opportunities. Product penetration remains low across both the telecoms and financial services industries in its markets. Meanwhile, personal wealth levels are rocketing and population levels are rising strongly too. 

Pre-tax profits at Airtel leapt 75.6% in the financial year to March, the latest financials this month showed. These came in at a forecast-beating $1.2bn. I expect the Footsie business to continue impressing as its customer base balloons. 

Royston Wild does not own shares in Airtel Africa. 

Rolls-Royce

What it does: Rolls-Royce is a multinational civil aerospace, defence, and power systems company based in the UK.

By Dylan Hood: The Rolls-Royce (LSE:RR) share price has struggled ever since the pandemic first hit. However, the firm recently announced a trading update that contained some encouraging metrics. For FY2021, gross margins increased 23.4% compared to FY2020, leaving the company profitable for the first time since the pandemic’s onset over two years ago.

The firm is also making encouraging steps in its plan to rebuild its balance sheet, and has committed to achieving positive free cash flow by Q3 of 2022.

Investors have already been reacting positively to this news, with the price of Rolls-Royce shares climbing over 6% throughout May. While still under the £1 mark, I believe now could be a great time to open a position in my portfolio for future growth.

Dylan Hood does not own shares in Rolls-Royce.

Softcat

What it does: Softcat provides IT infrastructure solutions. Its areas of expertise include cloud computing, data, and cybersecurity.

By Edward Sheldon, CFA. Softcat (LSE: SCT) shares have experienced a significant pullback since September 2021 and I think this has presented an attractive buying opportunity.

A recent trading update showed that the tech company still has plenty of momentum. Indeed, the group advised that for the quarter ended 30 April 2022, it generated double-digit year-on-year growth in revenue, gross profit, and operating profit. It added that it now expects operating profit for the full year to be “slightly ahead” of its previous expectations.

Meanwhile, after the recent pullback, the stock’s valuation now seems quite reasonable. At present, the forward-looking P/E ratio here is about 27, which is not high in my view, given the company’s track record, growth potential, high level of profitability, and strong balance sheet.

Of course, if future growth is disappointing, the stock could underperform. All things considered, however, I like SCT’s long-term risk/reward profile.

Edward Sheldon owns shares in Softcat.

Ceres Power

What it does: The Sussex-headquartered firm is a world leader in metal-supported solid oxide fuel cell technology.

By Dr. James Fox. The hydrogen industry has enormous potential and that’s why I’m keeping a close eye on Ceres Power (LSE:CWR).

The UK-based fuel cell developer is yet to turn a profit. However, revenue is growing. Ceres reported a 44% increase in revenue and other operating income in 2021, reaching £31.7m.

As such, it currently has a price-to-sales revenue of around 40. That’s not cheap, but equally this also reflects the sector’s potential.

Ceres licences its energy technology to individual manufacturers, reducing costs relating to the building of manufacturing facilities. It also has lucrative partnerships with Bosch and Doosan.

Doosan is preparing for a soft launch of its 10kW SOFC product this year and will open a 79,200sq metre plant in 2024. With production being scaled up, 2022 could be a transformative year for the firm.

And with the share price falling over the past 12 months, it looks like a good time to add this stock to my portfolio. 

James Fox does not own shares in Ceres Power.

Petrofac

What it does: Petrofac designs, builds, manages and maintains oil, gas, and renewable infrastructure internationally. 

By Michelle Freeman. The recent windfall tax announcement may have made headlines for the oil & gas giants like BP and Shell, but it also created an instant demand for oil & gas infrastructure services. 

Why? Because the ability to offset investment spend against the new levy means that right now, plenty of UK-based projects will have been given a huge business case boost.  

But getting the go-ahead is only part of the battle. They’ll also need to be able to spend the money – and that’s going to lead to a spike in demand for the next few years at least. 

Petrofac (LSE:PFC) is one of a few companies that are well positioned to benefit from this upturn – alongside the wider trend globally as infrastructure spend returns with the high oil and gas prices. 

The best part for me, though: it’s not a one-trick pony, having also diversified nicely with its complementary renewables infrastructure arm. Win-win! 

Michelle Freeman does not own shares in Petrofac.

Howden Joinery Group

What it does: Howden Joinery is the UK’s largest vertically integrated trade kitchen supplier within the home improvement industry.

By Zaven Boyrazian. Renovating or constructing new kitchens may not sound like a lucrative investment opportunity. Yet Howden Joinery (LSE:HWDN) seems to disprove that. Looking at its latest trading update, the firm delivered an impressive 21.8% revenue growth – almost twice what it’s historically achieved. And that’s during its low season.

With its peak trading period just around the corner, the stock looks primed for a bounce-back after its recent tumble in the general market turmoil. There are valid fears of a slowdown risk due to rising inflation and a consumer spending crunch. However, given management continues to pursue its expansion plans in the UK and France, there appears to be a high degree of internal confidence that I like to see.

From what I can see, Howden Joinery is delivering its fastest growth in years, yet its share price is trading near a 52-week low. That, to me, looks like a fantastic buying opportunity for my portfolio.

Zaven Boyrazian does not own shares in Howden Joinery Group.

Hikma Pharmaceuticals 

What it does: Hikma develops, manufactures and markets a wide range of high-quality generic, branded and in-licensed pharmaceutical products. 

By G A Chester. Hikma Pharmaceuticals (LSE: HIK) has been out of favour for a while. Its shares are down around 30% over the last 12 months. 

The latest knock to market sentiment came in May. Hikma downgraded its guidance on the expected performance of its generics division in 2022. 

Management’s previous guidance was for revenue growth of 8%-10% over 2021’s revenue of $820m and an operating margin of 24%-25%.The new guidance lowered revenue to $710m-$750m and the operating margin to around 20%. 

The reason was a change in expectations of the launch timing of a generic medicine, shifting its revenue and profit contribution from the second half of 2022 to the first half of 2023. 

I don’t think this damages Hikma’s long-term growth story. The recent resignation of chief executive Siggi Olafsson — to pursue other opportunities — adds further uncertainty. But I reckon the weak share price represents a great opportunity for me. 

G A Chester does not own shares in Hikma Pharmaceuticals 

Greencore

What it does: FTSE 250 firm Greencore supplies convenience foods to retailers and food-to-go outlets all over the UK.

By Roland Head. Convenience food specialist Greencore (LSE: GNC) is bouncing back strongly from the pandemic. The firm reported sales up 34% to £771m during the half year to 25 March, thanks to “strong growth in food to go”.

I think the company’s growth is set to continue. City forecasts suggest Greencore’s pre-tax profit will hit £63.5m in the 2022 financial year and £80.6m next year.

The business is expanding beyond its historic strength in sandwiches to offer foods such as salads, sushi, ready meals and soups and sauces. Over time, I think this strategy is likely to support steady long-term growth.

Of course, larger retailers such as supermarkets are tough customers. They’re likely to keep pressure on Greencore’s prices and margins.

Today, Greencore shares trade on 12 times 2022 forecast earnings, falling to a forecast P/E of nine for 2023. That looks good value to me.

Roland Head does not own shares in Greencore.

Plus500 

What it does: Plus500 provides online trading services in Contracts for Difference (CFDs) across a range of asset classes.

By Charlie Carman. Benefitting from the rise in retail trading activity over the pandemic, the Plus500 (LSE: PLUS) share price has soared nearly 90% since the start of the UK’s first lockdown in March 2020.

The FTSE 250 fintech company’s latest quarterly results revealed impressive 33% year-on-year increases in revenue and EBITDA. Admittedly, Plus500 experienced a 35% decline in active customers compared to Q1, 2021. However, average revenue per user rocketed by 104%, which sufficiently offsets any potential concerns for me.

Plus500 continues to expand its global operations. The Israel-based business recently obtained a new licence in Estonia, improving its core product offering in European markets. In addition, its acquisition of EZ Invest Securities signalled an entry into the substantial Japanese retail trading market.

It seems elevated stock market volatility is here to stay for the time being. I believe Plus500 shares should perform well in this macroeconomic environment. I’d buy in June.

Charlie Carman does not own shares in Plus500. 

Dr. Martens

What it does: Dr. Martens is a luxury brand that sells footwear. Its boots are a cultural staple and its best selling item.

By John Choong – With stagnating retail sales data over the last quarter, I was originally bearish about Dr. Martens (LSE: DOCS)’ prospects. However, its stellar FY 2022 results blew my expectations out of the water. As a result, its share price surged by 18%.

Being a luxury brand, Dr. Martens has managed to pass its costs onto customers without negatively impacting its top and bottom lines. In fact, its profit margins saw an increase to 19.9% for the year, along with strong sales figures. This has pushed its free cash flow in the right direction too.

Additionally, management expects a strong FY23, citing “huge headroom for growth in key markets”, as well as a strong wholesale order book with fixed factory prices. The latter allows the firm to hedge against inflationary pressures, which is crucial given the macroeconomic environment. 

Therefore, I’m optimistic about the future of the company, and will be looking to buy shares in the near future.

John Choong has no position in Dr. Martens

Wizz Air

What it does: Wizz Air is a Hungary-based airline, specialising in the operation of short-haul flights around Europe, North Africa, and the Middle East.

By Andrew Woods. The improvement in the firm’s passenger numbers in recent months is quite staggering. For May, Wizz Air (LSE:WIZZ) flew 4.1m people, with a load factor of 84.2%. This was up from 3.6m and 83.4% in April. These passenger figures for May and April also equate to 390% and 542% increases, compared to the same periods last year.

As pandemic travel restrictions are relaxed, the airline is expecting a very busy summer. It has been recruiting cabin crew at pace to try and keep up with demand, but many flights have already been cancelled. This disruption could subside once the business hires more employees.

Wizz Air recently signed a memorandum of understanding with the Saudi Arabian government to explore the potential development of routes throughout the country. This would greatly increase the company’s presence in the Middle East.

In addition, a cash balance of €1.3bn suggests that the firm is in decent financial shape and well positioned for returning to higher capacity in the coming months.

Andrew Woods does not own shares in Wizz Air.

A bolt from the blue

2022 has so far been a year to forget for Trifast’s (LSE: TRI) share price. The business — a giant in the manufacture of screws, bolts, and other types of fastenings — has plunged to within a whisker of penny stock territory. At 111p per share, it’s down 31% since January trading began.

I think this recent collapse makes Trifast’s share price hard to ignore. City analysts think the firm will follow a 78% earnings rise in this financial year (to March 2022) with a 27% year-on-year increase. This leaves Trifast trading on a forward price-to-earnings growth (PEG) ratio of 0.4 for the upcoming period. Any reading below one suggests that a UK share could be undervalued.

Trifast makes its products for a wide range of applications like consumer electronics, white goods, and automotive. It could therefore see sales slump if the cost of living crisis continues to worsen. However, as a long-term investor I find the business highly attractive. And I believe its share price today makes it something of a steal.

I like the fact that its end markets should grow strongly over the long haul on account of soaring emerging market wealth. I also like Trifast’s commitment to global expansion through acquisitions (in August it acquired US distributor Falcon Fastening Solutions for £6m to boost its North American footprint). And I think demand for the company’s fastenings could surge on the back of the electric car revolution too.

Another nearly penny stock I’d buy

I’d also use Greencore Group’s (LSE: GNC) plunge towards the 99p penny stock limit as an opportunity to buy. A forward price-to-earnings (P/E) ratio of 13.8 times doesn’t look shockingly cheap on paper. But recent market volatility has driven the food producers’ dividend yield through the roof. For 2022, the readout sits at a healthy 4.8%.

Any fresh pickup in the pandemic could threaten the recent recovery at Greencore. The food to go specialist saw revenues tank during Covid-19 lockdowns as people stayed at home. But as things stand, the outlook is pretty rosy for the business (City analysts think earnings here will rise 11% in 2022).

I’d buy Greencore because changing consumer habits mean the ‘food on the move’ marketplace is tipped to resume its strong growth of the last decade. Analysts at Mordor Intelligence think the ready-to-eat segment will expand at a compound annual growth rate of almost 5% between 2022 and 2027. And pleasingly Greencore is investing heavily to help it capitalise on this opportunity (it’s spending £30m to increase capacity at three of its manufacturing sites following recent contract wins). I think its plunge to 116p could make the company too cheap for me to miss.

Lockdown easing boosts sales

Food-to-go specialist Greencore Group (LSE: GNC) isn’t out of the woods just get as the Covid-19 crisis continues. But as things stand, trading conditions are improving rapidly at the food producer as people slowly get mobile again. Food on the move revenues at the firm were up 123% in the seven weeks from March 26, latest financials showed, and down just 14% from the same period in 2019.

Analysts at Lumina reckon the food-to-go segment will grow by 32% year-on-year in 2021 as the industry resumes its striking pre-coronavirus growth rates. And Greencore plans to invest £30m at three manufacturing sites over the next two years to meet customer demand. I think this makes it one of the best UK shares to buy for this market, despite its challenges. It is also investing heavily in automation to boost profits by bringing down costs.

On the right page

A stream of positive news on the jobs market bodes well for recruiters like PageGroup (LSE: PAGE). Latest data from the Office for National Statistics, for instance, showed that there were 862,000 vacancies in the UK between April and June. This was the highest level for 15 months. Conditions are steadily recovering in labour markets across the globe too.

PageGroup itself delivered record results in 17 of its markets during the second quarter, it announced recently. The UK support share upgraded its full-year profits expectations as a result. I’m expecting another blowout set of numbers when half-year results come out on Monday, 9 August, making now a great time to buy the business. Remember though, that fierce competition could damage the company’s ability to capitalise on improving market conditions.

One of the best UK tech stocks to buy

I also think Kape Technologies (LSE: KAPE) is a great UK tech share to buy this August. The problem of cybercrime has exploded in recent years as the internet has steadily taken over our lives. The outbreak of Covid-19 made the issue worse amid the e-commerce boom and the rise of remote working. Take hacking as an example. Office for National Statistics data showed a 55% year-on-year rise in the number of hack attacks in Britain during the 12 months to March 2021.

A quick Google search will show that hackers are causing carnage all over the globe too. This is where Kape comes in as a creator of security software that protects users’ privacy. Revenues at the business rocketed 60% in the first six months of 2021. I think it’s a great buy despite the threat of a potential high-profile product failure that might damage demand for its software. And I like the company’s transformative acquisition of Webselenese in March. It significantly boosts the company’s online presence and gives it a chance to supercharge organic sales.

Alan Oscroft: Greencore

My pick is Greencore (LSE: GNC), the food-to-go specialist, whose share price plunged on interim results day. The company reported a £7.9m pre-tax loss for the first half, in a business still devastated by the Covid-19 pandemic. The market hated it.

But Greencore expects to turn things round by the end of the year, and the liquidity is there. If the company can get back to 2019 earnings levels, we’d be looking at a P/E of around nine. I think that’s cheap. I rate Greencore a buy, and I’ve added it to my ISA shortlist.

Alan Oscroft has no position in Greencore.

Roland Head: IG Group Holdings

Online financial trading firm IG Group Holdings (LSE: IGG) has delivered a bumper performance over the last 12 months. Last year’s market crash was followed by a stock trading boom that’s seen the company’s profits double.

Markets are pricing in a return to more normal levels of trading over the coming year, and IG’s share price has been in retreat recently.

This sell-off has left IG shares trading on 13 times forecast earnings for the year ahead, with a dividend yield of 5%. Although IG faces some challenges this year, I think the stock offers good value at this level.

Roland Head owns shares of IG Group Holdings.

G A Chester: Fresnillo 

Silver and gold miner Fresnillo (LSE: FRES) recently reiterated its 2021 production guidance, despite continuing uncertainty presented by Covid-19 in Mexico. 

This FTSE 100 giant, with seven operating mines, is a low-cost producer and has a strong balance sheet. Furthermore, I think its pipeline of new mines and projects, together with a series of improvement programmes, bode well for the longer term. 

I reckon recent weakness in the share price is giving me an opportunity to buy in to the world’s largest primary silver producer at an attractive level. That the dividend yield is now above 2% is an added bonus. 

G A Chester has no position in Fresnillo. 

Harshil Patel: ITV 

ITV (LSE:ITV) looks well placed to benefit from a global economic recovery. Advertising revenues are rebounding from last year, and the majority of ITV’s shows are back in production.  

Several strategic and cost-cutting measures are on track. This is allowing ITV to invest in the acceleration of its strategy to become a digitally-focused media and entertainment company. 

ITV is a quality consumer cyclical stock that offers double-digit margins and return on capital. It’s cash generative and shares trade at an undemanding valuation. It also offers a forecasted dividend yield of 4%. Overall, I’d make it a top stock pick for June. 

Harshil Patel does not own shares in ITV.

Edward Sheldon: Experian

My top British stock for June is Experian (LSE: EXPN). It’s the world’s latest credit data company.

Experian posted a solid set of results for the year ended 31 March recently. For the year, revenue was up 7% on the back of strong demand for its analytics services while earnings per share were up 4%.

Looking ahead, the group said that it expects organic revenue growth in the range of 7% to 9% for FY2022. It noted that it had made a strong start to the year.

Experian is not the cheapest stock, and its valuation does add some risk to the investment case. Overall, however, I think the stock has a lot of appeal right now.

Edward Sheldon owns shares in Experian.

Kirsteen Mackay: Macfarlane 

Macfarlane (LSE:MACF) produces protective packaging for businesses. It mainly has a UK focus, with a growing presence in Europe. A sustained growth in ecommerce is increasing demand for packaging and Macfarlane counts both Hobbycraft and Halfords as customers. Then there’s the climate initiative increasing pressure for sustainable solutions, from which Macfarlane stands to benefit.  

The MACF share price has risen 88% in five years. It has a price-to-earnings ratio of 18, earnings per share are 6p and it doesn’t offer a dividend yield. I’d consider buying MACF shares as I think it has good growth opportunities ahead. 

Kirsteen Mackay has no position in Macfarlane.

Andy Ross: Sylvania Platinum  

Sylvania Platinum (LSE: SLP), the South African platinum group metals miner has fallen from its year high. I think it’s a really great company and see the share price weakness as an opportunity. The company has a tailwind behind it because what it mines is very likely to be used in electric vehicle batteries in the future.  

On top of that, there is a belief amongst some investors that we might be in a commodities supercycle. Even if that’s not the case, I back the shares to do well. It’s a low cost miner, which should be good for margins.  

As always with a growing miner, there are risks to bear in mind. Notwithstanding that though, Sylvania Platinum is my top stock for June.  

Andy Ross does not own shares in Sylvania Platinum.  

Rupert Hargreaves: Glencore

Commodity prices have been ripping higher this year. For example, the price of copper is up around 29% year-to-date. I think Glencore (LSE: GLEN) could benefit from this trend.

Not only does the company produce commodities such as copper, but it also trades them.

This trading business can be highly profitable. As the world’s largest trading business, I expect the demand for Glencore’s services to increase in line with the rising demand for commodities.

The most considerable risk facing the company is the potential for a sudden fall in commodity prices. This could have the opposite effect on the business.

Rupert Hargreaves does not own shares in Glencore.

Manika Premsingh: Volex

Power cords and cable assembly solutions provider Volex (LSE: VLX) has more than doubled its share price in the past year, driven by positive stock market sentiment and its own robust performance. According to its latest trading update, full year revenue for the 52 weeks ending April 4, 2021 will be ahead of market expectations.

For this reason, I am looking forward to its results due in June. I’d also check details of its exploding demand from electric vehicle (EV) customers, which can be a potentially big growth driver for the future.

I would also look at the impact on debt from its acquisition of Turkey’s DE-KA, which may be risky, if high, at a time of continued economic uncertainty.

Manika Premsingh has no position in Volex.

Stuart Blair: Diageo

Diageo (LSE: DGE) is an alcoholic beverages company, with a portfolio of over 200 brands. Its share price has already recovered strongly since last year, and I believe further gains are likely.

Indeed, the company recently announced an improved profit forecast for 2021 and decided to restart its return of capital programme. As the company is now actively returning more money to the shareholders, it’s clearly in a strong financial position.

Diageo’s extensive product range and market-leading position should also help protect it against the risk of another economic slowdown. This is why Diageo is my top stock for June.

Stuart Blair owns shares in Diageo.

Christopher Ruane: Renalytix AI

I recently bought into Renalytix AI (LSE: RENX) despite its limited commercial history. I was impressed by prospective new business opportunities including a US government deal, as well as clinical study results.

The company specialises in kidney diagnostics. That is a significant market with resilient customer spending. The company’s AI-enabled technology gives it a compelling position. As revenues grow I expect Renalytix’s profits to benefit from the scaleability of its technology.

One risk is that competitors could develop their own solutions and reduce Renalytix’s competitive advantage. 

Christopher Ruane owns shares in Renalytix AI.

Royston Wild: Bloomsbury Publishing 

I reckon Bloomsbury Publishing (LSE: BMY) could be a top UK stock to load up on this June. In fact I’d get my skates on and buy it before the release of full-year results on Wednesday, 2 June. 

The Harry Potter publisher has a history of lifting its profits projections in recent times. And it was at it again last time it updated the market with a pre-close update in March. Bloomsbury has benefitted from the uptick in reading during Covid-19 lockdowns. But I reckon the company’s high-quality stable of titles — along with its foray into academic publishing — will keep the top line fizzing. 

Royston Wild does not own shares in Bloomsbury Publishing.

Dan Peeke: HSBC

My favourite UK share for June 2021 is HSBC (LSE:HSBA).

I mentioned in an article towards the end of April that HSBC’s price-to-book ratio was 0.6. It still is, and I think that’s a bargain. On top of this, the company is beginning to focus on its Asian ventures. This is where more than 80% of its 2019 profits came from, so I think that’s the perfect approach.  

The company’s withdrawal from the US and difficulty generating revenue thanks to low interest rates are setbacks, but I’m still confident that it’ll make a good long-term investment.

Dan Peeke doesn’t own shares in HSBC.

Paul Summers: BlackRock World Mining Trust

My top stock for June is the BlackRock World Mining Trust (LSE: BRWM). As it sounds, this invests in a basket of the biggest miners in the world. It also pays an attractive dividend (currently 3.3%). 

Naturally, investing in the cyclical commodities market won’t suit all investors. Some may also baulk at the 1% ongoing charge. Even so, this is arguably the least risky way of getting exposure to the huge demand for metals such as copper from electric vehicle manufacturers in the years ahead.  So, despite rising 80% in the last year alone, I think there’s more upside ahead. 

Paul Summers has no position in the BlackRock World Mining Trust

Nadia Yaqub: Premier Foods

I think things are turning around for Premier Foods (LSE: PFD). Its recent full-year results were impressive, which saw a strong increase in revenue and operating profit. Even net debt has fallen to a manageable position.

The key thing to note is the reinstatement of the dividend. The company will pay its first income payment in 13 years. Clearly the firm’s financial position is improving. It’s also ramping up growth with new product launches. I reckon this is a sign of good things to come and the stock could rise further.

Nadia Yaqub does not own shares in Premier Foods

Ben Hargreaves: Polymetal International 

With concerns over inflation causing a degree of volatility in the market, I think holding shares of a solid dividend earner like Polymetal International (LSE:POLY) is a good idea. At 5.7%, the dividend is healthy and the business itself is well-positioned, as a miner of precious metals.  

The bulk of the company’s revenue comes from gold mining and the price of the metal is currently up 11% over the last year. In addition, the company is in the top five silver producers worldwide whilst its price has increased 62% in the same time period. Though the company’s shares can fluctuate on the price of precious metals, I believe the strong dividend still provides an adequate cushion to make it a solid investment. 

Ben Hargreaves does not own shares in Polymetal International.

Greencore just posted a £7.9m pre-tax loss for the first half of its current year. That’s on an adjusted basis, and comes from a 19% fall in revenue. The bottom line shows a loss per share of 1.4p. And in cash terms, we saw a free cash outflow of £23.6m. The one bright spot is debt, which (excluding lease liabilities) fell during the period by £79.2m from the end of last year, to £271.3m. That’s not through operating performance, mind, as the company raised £90m in an equity placing in November.

Greencore share price valuation?

Greencore’s net debt to EBITDA ratio might make some eyes water, at 7.2 times. But that is, hopefully, a one-off. Looking back to the same point a year ago, the same multiple stood at just 2.1 times. That’s a lot better, but I get twitchy over companies with ratios much above 1.5 times. Still, I’m not going to read too much into it at this point. But I do wonder what long-term effect it might have on the Greencore share price.

The company sells food to go, including sandwiches, sushi, snacks, soups, and things like that. Those are big business for the lunch crowds during normal times. But when the same consumers are locked down at home and not buying? Well, I could see these latest results as not too bad in the circumstances. Still, judging by the Greencore share price tumble, investors don’t agree with me.

Better second half expected

The company is optimistic about the rest of the year. I know, they always are, but I do find it plausible. If the UK continues its reopening along the lines of current plans, Greencore says it expects “to generate a FY21 Adjusted Operating Profit outturn above FY20 levels“.

What about the Greencore share price now? Does it represent good long-term value? If the company can get its earnings back to 2019 levels, we’d be looking at a price-to-earnings of under nine. Do I think that will happen? The food-to-go market has been growing steadily over the longer term, and I expect that trend to resume.

No obvious liquidity problem

Greencore is in a comfortably liquid position. At 26 March, it had cash and undrawn committed debt facilities of £302m. That looks like more than enough to see the company through to profits again. I’d like to see it use as little of the debt facility as possible, mind. And that is one of the risks I’ll be keeping an eye on. I’ll want to see what the year-end debt to EBITDA figure looks like, and which direction it’s likely to be going after that.

But right now, even with the uncertainties of the rest of the year, the Greencore share price looks like a buy to me. It’s on my list of potentials for my next investment.

Greencore — one of the country’s biggest operators in the ‘food-to-go’ arena — has toppled from the 12-month closing highs of 171.2p per share punched just yesterday. It’s down 12% in Tuesday business, following a negative reception to first-half trading numbers.

At 149.8p the Greencore share price is now 17% higher than it was this time a year ago.

Greencore’s share price falls as profits plunge

Greencore has plunged after announcing that it had swung to a meaty loss during the 26 weeks to March 26. Revenues at the convenience food giant tumbled 19% year on year to £577.1m, it said.

It’s perhaps no surprise Covid-19 restrictions continued to damage demand for its edible goods though, with Greencore declaring that “the reduction in consumer mobility as a result of tiered restrictions and lockdowns in the UK” caused turnover to decline.

Greencore saw sales at its food-to-go portfolio (comprising sandwiches, salads, sushi and other chilled snack foods) tumble 26% between October and March, to £339.2m. Meanwhile, revenues at its other convenience categories (from chilled ready meals and soups to pre-made Yorkshire puddings) dropped 7% year-on-year to £237.9m.

As a result, the company recorded an adjusted pre-tax loss of £7.9bn for the first fiscal half. This compares with profits of £31.1m recorded for the same period a year earlier.

In better news, Greencore’s net debt dropped 11% to £332.1m as of March. This largely reflects the company’s £90m equity raise last November and the sale of its molasses business a month later.

On the rebound?

Greencore’s taken an enormous whack from the ongoing public health emergency. But today’s update suggests those fabled green shoots of recovery are taking root as coronavirus restrictions are steadily unwound.

Greencore said it has witnessed “encouraging revenue momentum” during the first seven weeks of the second fiscal half. It also said pro forma revenues in its food-to-go categories were up 123% in the period which, in turn, pushed turnover across the group 64% higher, on a pro forma basis.

Sales at group level were still 5% lower in those seven weeks versus the equivalent pre-pandemic levels in financial 2019. But Greencore said it expects to move back into profit if Covid-19 lockdowns are rolled back in the UK as planned.

It added: “A continued reopening of the UK in line with the current roadmap and a consequential rebuild of group revenue” would see adjusted operating profit in the year to September 2021 beat last year’s levels.

Greencore’s adjusted operating profit totalled £32.5m in fiscal 2020, down from £105.5m the year before.

My interest in investing in them has strengthened this week as the company has made the news, with the potential sale of its primary products division in order to concentrate on its food and beverage solutions.

In effect it’s moving away from sweeteners such as corn syrup, to more health-conscious ingredients that replace sugars.

It’s a move in line with shifting tastes, making the business more competitive, as the consumer is more aware of the dangers of too much sugar, such as type 2 diabetes.

This why its share price should remain a bullish FTSE 250 investment for now.

Its shares accelerated by c.6% soon after the news of the potential restructuring broke on April 26. Yet Tate and Lyle’s stock price has seen an impressive climb of c.30% over the past six months.

The group’s trading statement confirmed an 8% rise in revenue, for the three months up to December 31.

Additionally, a rise in profits up to the end of March for the year is expected, partly due to increased momentum in its food and beverage solutions.

Greencore another FTSE 250 opportunity

Convenience food producer Greencore (LSE:GNC) is another FTSE 250 investment I am keen on in this sector.

This is despite a predictably difficult year due to the pandemic, as the food-to-go market has declined due to lockdown.

Greencore has been hurt as it supplies its products, which range from salads to sushi, to convenience retailers such as coffee shops, and travel related outlets.

Its trading statement revealed that food-to-go business has decreased by 21.7%, for the 13 weeks up to Christmas Day last year.

However, the stock has climbed this year, after falling to 90p per share after the second lockdown began in November.

And this comes as no surprise, as the food-to-go market should grow again this year with lockdown easing.

Analysts Lumina Intelligence has forecast growth of c.32% during 2021, and that the UK food-to-go market will increase in value by £7.3 billion over the next three years.

It’s a market that should remain bullish, providing me with a timely investment – unless there are major setbacks to lockdown easing, such as a dangerous Covid-19 variant.

It’s not all cheer for food producers

One FTSE 250 investment I am less enthused about is in meat provider Cranswick (LSE: CWK), even though, due to increased home consumption, the company produced a resilient response to the pandemic.

Its share price has been very up and down over the past year. Looking ahead, even though meat processing is expected to expand, there are several patterns that are expected to slow down the growth of meat processing.

The pandemic has resulted in the closure of many high-street meat-serving outlets, with damage being caused to many businesses even if they still remain open.

Additionally the popularity of vegetarianism and vegan diets are a threat to sales of meat in the short and longer term.

In contrast, Tate and Lyle and Greencore focus on several markets that are set to develop, which makes them better options to dish up a sound FTSE 250 investment.

Here are three companies I’d buy ahead of the next stage of lockdown easing in May. 

UK shares to buy 

As commuters start to go back into the office and national travel resumes, I’d buy FirstGroup (LSE: FGP) as part of a basket of UK recovery shares. Throughout the pandemic, the public has been advised to avoid public transport, but I think this could be an excellent opportunity to buy the shares. 

As the world moves towards a more sustainable future, public transport demand is only likely to grow. I think this means that companies like FirstGroup could see increasing demand for their services.

Of course, it could also be years before the business returns to growth. Consumers may continue to shun public transport immediately after the pandemic. There’s also the risk of another wave of coronavirus. Despite these risks, I would buy the stock for my portfolio of UK shares today as a long-term recovery play. 

Food to go 

As well as FirstGroup, I’d also buy the manufacturer of convenience foods Greencore (LSE: GNC) for my portfolio of recovery stocks. Greencore relies on commuters for a large percentage of its food sales. Therefore, as the number of commuters has plunged over the past 12 months, so have the group’s revenues. 

But as commuting numbers start to increase again, I think the company could see rising sales. It may also benefit from the fact that some businesses have exited the market during the pandemic. This could allow Greencore to capture their share, which may allow it to grow back bigger. This is the best-case scenario. 

In the worst-case scenario, another wave of coronavirus could set the company’s recovery back years. Its weakened balance sheet may not be able to take another shutdown without more support. If Greencore does have to raise more cash from investors, it could send shares in the FTSE 250 business plunging lower. 

Nonetheless, I would buy the company today for my portfolio of UK shares, considering its recovery potential. 

Reopening trade 

As pubs around the UK start to reopen after months of being closed, I would buy the City Pub (LSE: CPC) group too. After a rough 2020, this business is expected to turn a small profit of £600k this year. That’s not much, but it could be a considerable improvement on last year’s projected loss of nearly £8m. 

City Pub has been building out its pub estate over the past few years. As it has acquired and built out new premises, sales rose from £15m in 2014 to £60m for 2019. That said, it could take some time for the business’s revenues to return to this level. However, I think its track record of growth suggests that when things are back to normal, management will drive City Pub in the right direction. 

As such, I’d buy the stock for my portfolio of UK shares. The enterprise’s principal risks are rising costs that could slow its recovery and another wave of Covid. Both of these headwinds could work against the firm’s bounce-back. Therefore, this recovery play might not be suitable for all investors. 

The Covid-19 crisis has created huge problems for many UK shares. But for many companies, these troubles are likely to be fleeting. Remember that the FTSE 100 doubled in value in the decade following the 2008/09 banking crisis as corporate profits rebounded. I expect stock prices to explode again this time around, meaning that those who invest today could stand to make a fortune.

The two growth stocks I describe below should record spectacular earnings recoveries in 2021. I’d buy them for my Stocks and Shares ISA today and hold them for years:

#1: A formidable foodie

2020 has proved a disaster for food-to-go specialists like Greencore Group (LSE: GNC). Sales of edible goods like these slumped this year as the pandemic forced people to stay at home. This particular UK share saw adjusted pre-tax profits slumping more than 80% in the fiscal year to September 2020. And it was forced into a fresh share placing last month to help it weather the storm.

This year’s problems, though significant, are likely to prove a temporary speed bump in Greencore’s growth story. The food-to-go segment was rocketing prior to Covid-19 restrictions and, according to IGD, growing twice as fast as the broader UK food and grocery retail market. FTSE 250-quoted Greencore can look forward to demand for its goods ripping higher again as people return to the outside world, I feel.

It’s why City analysts reckon Greencore’s annual earnings will rocket 149% in fiscal 2021. This reading leaves the share trading on a price-to-earnings growth (PEG) reading of 0.1, making it a brilliant pick for value-hungry growth investors like me.

#2: Another top UK share for 2021+

Student accommodation providers have also suffered significantly from Covid-19 as university attendance has been hit. Take Unite Group (LSE: UTG). The FTSE 250 company’s last update showed that only 88% of its bed spaces had been let for the 2020/21 academic year versus 98% a year earlier.

On a brighter note, though, it has seen check-in numbers improve in recent weeks. It’s hoped that this represents the first step in a return to normality and could prompt a significant earnings recovery in 2021. City analysts reckon Unite’s bottom line will bounce 50% next year. And this leaves it trading on a PEG ratio of 0.6.

Don’t think that Unite’s just a top pick for strong profits growth in 2021, though. This particular accommodation market is rocketing and, according to RWinvest, there are around 2.3m students in the UK. This compares with 1.5m two decades ago. And the business is expanding aggressively to capitalise on this lucrative market (last month it exchanged contracts to acquire an 800-bed development site in Paddington, London with targeted delivery for the 2023/24 academic year).